Harbinger Capital Partners

January 31, 2007 17:55 ET

Harbinger Increases Offer Price for Calpine Power Income Fund to $13.00

CALGARY, ALBERTA--(CCNMatthews - Jan. 31, 2007) -

NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES WIRE SERVICES

Harbinger Capital Partners today announced that its indirect wholly-owned subsidiary HCP Acquisition Inc. ("HCP") has formally amended its previously-announced take-over bid (the "Harbinger Offer") for the trust units of Calpine Power Income Fund (the "Fund") increasing the offer price to $13.00 and extending the expiry time from 9:00 p.m. (Calgary time) on February 5, 2007 to 9:00 p.m. (Calgary time) on February 12, 2007, unless further extended, varied or withdrawn. A notice of variation and extension setting out the terms and conditions of its amended offer has been filed and will be mailed to unitholders together with a notice of change to the circular of the CCT Trustees recommending that unitholders accept the increased Harbinger Offer. Such documents will be available on the System for Electronic Document Analysis and Retrieval at www.sedar.com.

In addition, the application by HCP to cease trade the Fund's unitholder rights plan and the proposed application by the Fund to cease trade the Harbinger Offer have been withdrawn by HCP and the Fund, respectively.

Cautionary Statements

This news release contains forward-looking statements, which reflect HCP's and Harbinger Capital Partners' current beliefs and expectations. These forward-looking statements are subject to risks and uncertainties. Many factors could cause actual results to differ materially from the results discussed in the forward-looking statements. Undue reliance should not be placed on forward-looking statements.

This announcement does not constitute or form part of any offer or invitation to purchase, otherwise acquire, subscribe for, sell, otherwise dispose of or issue, or any solicitation of any offer to sell, otherwise dispose of, issue, purchase, otherwise acquire or subscribe for, any security. The release, publication or distribution of this announcement in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this announcement is released, published or distributed should inform themselves about and observe such restrictions. The Harbinger Offer is not being made to, nor will deposits be accepted from, or on behalf of, unitholders in any jurisdiction in which the making or acceptance of the Harbinger Offer would not be in compliance with the laws of such jurisdiction. However, HCP or its agents may, in the sole discretion of HCP, take such action as HCP may deem necessary to extend the Harginger Offer to unitholders in any such jurisdiction.

This announcement contains certain information relating to the Fund and its subsidiary entities. Neither HCP nor Harbinger Capital Partners have had any due diligence access to the Fund or its subsidiary entities. The information in this announcement relating to the Fund and its subsidiary entities has been compiled from information included in public documents filed by the Fund only and has not been commented on or verified by the Fund, its trustees, or Harbinger Capital Partners or HCP. HCP and Harbinger Capital Partners believe that they are not in possession of any material non-public financial or other information in respect of the Fund or its subsidiary entities.

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